UNIVERSITY 

OF  CALIFORNIA 

LOS  ANGELES 


SCHOOL  OF  LAW 
LffiRARY 


SUPPLEMENT  TO  TREASURY   DECISIONS 

(T.  D.  2866) 


TREASURY  DEPARTMENT 

UNITED  STATES  INTERNAL  REVENUE 


U..S-     Xvit^ni,!      Itiv^AMue     oersJ^c€. 

REGULATIONS  54 

RELATING  TO  THE 

EXCISE  TAXES 

ON 

SALES  BY  THE  DEALER 
OF  WEARING  APPAREL,  ETC, 

UNDER 

Section  904  of  Title  IX  of  the 

REVENUE  ACT  OF  1918 


WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 

1919 


s 

Bo 
\9t9 


REGULATIONS 

RELATING  TO  THE 

EXCISE  TAXES  ON  SALES  BY  THE  DEALER 
OF  WEARING  APPAREL,  ETC. 

UNDER 

Section  904  of  Title  IX  of  the  Revenue  Act  of  1918. 

TABLE  OF  CONTENTS. 

Page. 

Section  904.  The  law 5-6 

Section  904  (a).   Imposition  of  tax 6 

Article    1.  Effective  date G 

2.  Purcliaser  i.s  liable 6 

3.  Who  is  the  dealer? 6 

4.  Dealer  responsible  for  tax G 

5.  CoiKsuuiption   or  use G-7 

6.  Basis  of  tax 7 

Sale 7 

Preniiuins 7 

Price 7 

7.  Discounts  and  expenses 7 

Commissions 7 

Delivery  charges 7 

8.  Exchanges  and  refunds 7-S 

9.  AVhen  tax  attaches 8 

10.  Sales  to  a  State  or  subdivision 8 

11.  Second-hand  articles 9 

12.  Repairs   and    alterations 9 

Section  904  (a).  Articles  subject  to  tax 9 

Article  13.  Carpets  and  rugs 9 

14.  Picture  frames ! 10 

15.  Trunks .—  10 

16.  Valises,  etc 10-11 

17.  Purses,  handbags,  etc 11 

IS.  Portable  lighting  fixtures,  lamps,  shades,  etc 11-12 

19.  Umbrellas,   etc ^ 12 

20.  Fans 12 

21.  Smoking  coats,  bath  and  lounging  robes,  etc 12 

22.  Waistcoats,  men's,  sold  separately 12-13 

23.  Hats,  etc.,  women's  and  misses' 13 

24.  Hats,  etc.,  men's  and  boys' 13 

25.  Caps,  men's  and  boys' 13 

26.  Boots,  shoes,  etc 14 

27.  Neckwear,  men's  and  boys' 14 

3 


4  TABLa  O'P   CONTENTS. 

Soetion  904  (a) — Conllnuod.  Page. 

Article  2S.  vStockings,  silk 14-15 

29.  Shirts,  men's 15 

30.  Undei'wear,  etc 15 

31.  Waists,  petticoats,  kimonos 15 

Section  904  (b)  Exemptions : 16-18 

Article  32.  Exceptions " lG-18 

Sections  904  (c),  502,  1309.   Return  and  payment  of  tax 18 

Article  33.  lieturn  and  payment  of  tax 18-19 

Section  1805.   Extension  of  existing  statutes 19 

Article  34.  Aids  to  collection  of  tax 20 

Section  1310  (a)  (b)  Credits  and  refunds 20 

Article  35.  Credits  and  refunds 20 

Section    1310  (c)    Exports 20 

Article  36.  Exemption  of  export  sales 20-21 

37.  Export,  proof  of ^ 21 

Section  1313.   Fractional  part  of  cent 21 

Article  38.  Fractional  part  of  cent  disregarded,  when 21-22 

Section  1314.   Medium  of  payment  of  tax 22 

Article  39.  Checks,  uncertified,  payment  of  tax  by 22 

40.  Checks,  dishonored,  procedxire  with  respect  to 22 

Section  130S.  Penalties 23 

Article  41.  Penalties 23-24 

Section  1319,   Misrepresentation  of  tax 24 

Article  42.  Misrepresentation  of  tax 24 

Section  1309.   Authority  for  regulations 25 

Aiticle  43.  Kegulatioos,  promulgation  of . 25 


EXCISE  TAXES  UNDER  SECTION  904. 

THE  LAW. 

Sec.  904.  (a)  That  on  and  after  May  1,  1919,  there  shall  be  levied,  assessed, 
collected,  and  paid  a  tax  equivalent  to  10  per  centum  of  so  much  of  the  amount 
paid  for  any  of  the  followinj:?  articles  as  is  in  excess  of  the  price  hereinafter 
specified  as  to  each  such  article,  when  such  article  is  sold  by  or  for  a  dealer 
or  his  estate  on  or  after  such  date  for  consumption  or  use — 

(1)  Carpets  and  rugs,  including  fiber,  except  imported  and  American  rugs 
made  principally  of  wool,  on  the  amount  in  excess  of  $5  per  square  yard ; 

(2)  Picture  frames,  on  the  amount  in  excess  of  $10  each; 

(3)  Trunks,  on  the  amount  in  excess  of  $50  each; 

(4)  Valises,  traveling  bags,  suit  cases,  hat  boxes  used  by  travelers,  and  fitted 
toilet  cases,  on  the  amount  in  excess  of  $25  each ; 

(5)  Purses,  pocketbooks,  shopping  and  hand  bags,  on  the  amount  in  excess 
of  $7.50  each ; 

(6)  Portable  lighting  fixtures,  including  lamps  of  all  kinds  and  lamp  shades, 
on  the  amount  in  excess  of  $25  each ; 

(7)  Uml)reHas,  parasols,  and  sun  shades,  on  the  amount  in  excess  of  $4  each; 

(8)  Fans,  on  the  amount  in  excess  of  $1  each; 

(9)  House  or  .smoking  coats  or  jackets,  and  bath  or  lounging  robes,  on  the 
amount  in  excess  of  $7.50  each ; 

(10)  Men's  wai.stcoats,  sold  separately  from  suits,  on  the  amount  in  excess 
of  $5  each ; 

(11)  Women's  and  mis.ses'  hats,  bonnets,  and  hoods,  on  the  amount  in  ex- 
cess of  $15  each ; 

(12)  Men's  and  boys'  hats,  on  the  amount  in  excess  of  $5  each; 

(13)  Men's  and  boys'  caps,  on  the  amount  in  excess  of  $2  each ; 

(14)  Men's  women's,  misses',  and  boys'  boots,  shoes,  pumps,  and  slippers, 
not  including  shoes  or  appliances  made  to  order  for  any  person  having  a 
crippled  or  deformed  foot  or  ankle,  on  the  amount  in  excess  of  $10  per  pair; 

(15)  Men's  and  boys'  neckties  and  neckwear,  on  the  amount  in  excess  of 
$2  each; 

(16)  Men's  and  boys'  silk  stockings  or  hose,  on  the  amount  in  excess  of  $1 
per  pair ; 

(17)  Women's  and  misses'  silk  stockings  or  hose,  on  the  amount  in  excess  of 
$2  per  pair; 

(18)  Men's  shirts,  on  the  amount  in  excess  of  $3  each; 

(19)  Men's,  Avomen's,  misses',  and  boys'  pajamas,  night  gowns,  and  under- 
wear, on  the  amount  in  excess  of  $5  each;  and 

•(20)   Kimonos,  petticoats,  and  waists,  on  the  amount  in  excess  of  $15  each. 

(b)  The  tax  imposed  by  this  section  shall  not  apply  (1)  to  any  article 
enumerated  in  paragraphs  (2)  to  (8),  both  inclusive,  of  subdivision  (a),  if  such 
article  is  made  of,  or  ornamented,  mounted,  or  fitted  with,  precious  metals  or 
imitations  thereof  or  ivory,  or  (2)  to  any  article  made  of  fur  on  the  hide  or 
pelt,  or  of  which  any  such  fur  is  the  component  material  of  chief  value,  or  to 
(3)  any  article  enumerated  in  subdivision  (17)  or  (IS)  of  section  COO. 

5 


6  EXCISE  TAXES  ON  SALES  BT  THE  DEALER.         1904 

(c)  The  taxes  Imposed  by  this  section  shall  be  paid  by  the  purchaser  to  the 
vendor  at  the  time  of  the  sale  and  shall  be  collected,  returned,  and  paid  to  the 
United  States  by  such  vendor  in  the  same  manner  as  provided  in  section  502. 

IMPOSITION  OF  TAX. 

Sfx.  904.  (a)  That  on  and  after  May  1,  1919.  there  shall  be  levied, 
assessed,  collected,  and  paid  a  tax  equivalent  to  10  per  centum  of  so 
much  of  the  amount  paid  for  any,  of  the  following  articles  as  is  In 
excess  of  the  price  hereinafter  specified  as  to  each  such  article,  when 
such  article  is  sold  by  or  for  a  dealer  or  his  estate  on  or  after  such 
date  for  consumption  or  use. 

Akticus  1.  Effective  date.— The  tax  is  imposed  with  respect  to 
articles  sold  on  or  after  May  1,  1919. 

Art.  2.  Purchaser  is  liable. — The  law  imposes  the  tax  upon  the  pur- 
chaser. It  is  to  be  collected  from  him  by  the  dealer,  who  must  repay 
it  to  the  collector  of  internal  revenue,  but  see  Article  4. 

Art.  3.  Who  is  the  dealer? — ^For  the  purpose  of  the  tax  and  as 
used  in  these  regulations,  the  term  "  dealer  "  means  any  individual, 
partnership,  association,  or  corporation,  and  the  estate  of  such  a  dealer, 
engaged  in  the  business  of  selling  for  profit  any  of  the  enumerated 
articles,  to  a  purchaser  for  consumption  or  use.  Thus,  a  dealer 
may  be  a  manufacturer,  jobber,  wholesaler,  retailer,— mail  order 
house,  installment  house,  trustee  in  bankruptcj',  receiver,  pawn- 
broker, or  peddler,  if  the  sale  is  for  consumption  or  use ;  but  a 
casual  sale,  not  in  the  course  of  trade  or  business,  by  an  individual, 
of  any  of  the  enumerated  articles,  does  not  constitute  the  vendor  a 
"dealer"  within  the  meaning  of  section  904.  An  auctioneer  or 
broker  is  a  dealer  within  the  meaning  of  the  act  in  respect  to  all 
sales  made  by  him  of  articles  in  which  he  has  title,  but  not  in  respect 
to  articles  which  he  is  selling  as  an  agent. 

Art.  4.  Dealer  responsible  for  tax, — Responsibility  for  collecting  the 
tax  is  imposed  upon  the  dealer,  on  all  sales  made  direct  by  him  or 
through  an  agent,  whether  a  sales  agent,  broker,  or  auctioneer,  and 
the  dealer  must  pay  it  to  the  Collector  of  Internal  Revenue  (see  article 
88).  A  receiver  or  trustee  in  bankruptcy'  conducting  a  busmess  under 
court  order  is  responsible  for  the  collection  of  the  tax  upon  articles 
sold  by  him. 

Failure  to  collect  the  tax  will  not  relieve  the  dealer  of  responsibility 
for  payment  thereof. 

Art.  5.  Consumption  or  use, — The  tax  applies  to  goods  sold  for  cop- 
sumption  or  use.  An  article  sold  for  the  purpose  of  resale,  either  in 
the  original  or  in  an  altered  or  further  manufactured  form  or  for 
similar  profitable  disposition,  is  not  subject  to  tax  upon  such  sale. 

However,  an  article  will  none  the  less  be  regarded  as  sold  for  con- 
sumption or  use  because  it  is  expected  to  realize  profit  from  its  use. 
An  article  purchased,  for  instance,  to  be  leased  or  rented,  or  for 


«004         EXCISE  TAXES  ON  SALES  BY  THE  DEALER.  7 

furnishing  a  building  to  be  leased  or  rented,  is  nevertheless  procured 
for  consumption  or  use  and  therefore  taxable. 

Unless  the  purchaser  is  a  wholesaler,  retailer,  or  manufacturer, 
customarily  engaged  in  the  business  of  manufacturing  or  selling  the 
article  in  respect  to  which  the  applicability  of  the  tax  is  questioned, 
the  sale  to  him  will  be  deemed  to  be  for  consumption  or  use,  unless 
the  contrary  is  clearly  shown. 

Art.  G.  Basis  of  tax — Sale. — The  tax  is  on  the  sale  by  or  for  a 
dealer  or  his  estate,  of  any  of  the  articles  enumerated  in  section  904 
when  sold  for  consumption  or  use.  The  tax  is  payable  in  respect  to  a 
sale  made,  whether  or  not  the  purchase  price  is  actually  collected, 
but  see  article  9. 

Pnce. — The  tax  is  measured  by  the  price  for  which  the  article  is 
sold.  It  is  on  the  actual  sales  price  of  the  goods  sold  and  not  on  the 
list  price,  where  that  differs  from  the  sales  jiiice.  The  tax  can  not  be 
included  in  the  selling  pnce,  but  must  be  billed  as  a  separate  item, 

Premkiins. — The  giving  of  so-called  "  premimns ''  in  return  for 
wrappers,  labels,  coupons,  trading  stamps,  or  other  script  delivered  in 
connection  with  the  sale  of  a  commodity,  is  a  sale  by  a  dealer  within 
the  meaning  of  section  904,  if  the  premium  is  within  the  class  of  arti- 
cles enumerated  in  that  section.  In  such  cases  the  tax  attaches  at  the 
time  title  in  the  premium  passes  to  the  person  rcceiAnng  it  in  exchange 
for  such  script,  and  is  to  be  computed  on  the  fair  market  value  of 
the  premium  at  such  time. 

For  the  rule  when  an  article  is  within  the  language  of  two  or  more 
sections  of  the  statute,  each  imposing  a  tax,  see  article  3-2. 

Art.  7.  Discounts  and  expenses. — A  discount  for  cash  or  other  dis- 
count jnade  subsequently  to  the  sale  can  not  be  deducted  in  com- 
puting the  price  for  the  purpose  of  the  tax,  but  see  article  6  as  to 
goods  sold  for  less  than  the  list  price. 

Conwiisslons. — Commissions  to  agents  and  othei?  expenses  of  sale 
are  not  deductible  from  the  price. 

Delivery  charges. — If  articles  are  sold  and  the  delivery  charges  to 
point  of  delivery  are  paid  by  the  purchaser  as  a  specific  item,  or  if 
they  are  sold  delivered  at  a  sum  less  delivery  charges  to  be  paid  by 
the  purchaser,  such  charges  need  not  be  included  as  part  of  the  price 
of  the  goods;  but  if  the  dealer  sells  goods  at  a  delivered  price,  and 
himself  pays  the  delivery  charges,  he  is  not  entitled  to  make  any  de- 
duction on  account  of  the  inclusion  in  the  price  of  such  charges. 

Art.  8.  Exchanges  and  refunds. —  (a)  If  taxable  articles  are  sold 
and  subsequently  returned,  and  the  sale  entirely  rescinded,  no  tax  is 
payable;  and  if  paid  it  may  be  refunded  to  the  purchaser  and  the 
dealer  may  take  credit  therefor  in  the  return  for  the  month  in  which 
the  refund  is  made. 


8  EXCISE  TAXES   ON   SALES   BY   THE  DEALER.  i  004 

(b)  If  part  only  of  the  taxable  articles  sold  atone  time  are  returned 
and  amount  paid  therefor  refunded  by  the  dealer,  or  if  taxable  arti- 
cles are  sold  and  thereafter  exchanged  for  other  taxable  articles  at 
a  lower  price,  or  if  taxable  articles  are  sold  and  thereafter  exchanged 
for  other  taxable  articles  at  a  higher  price,  the  purchaser  paying  the 
difference,  the  purchaser  must  ipay  the  tax  on  the  se>cond  sale,  and 
the  dealer  shall  giAo  a  credit  or  refund  to  the  purchaser  of  the  tax 
paid  on  each  of  the  taxable  articles  returned,  and  take  credit  there- 
for in  the  return  for  the  month  in  which  the  refund  is  made  or 
credit  to  the  purchaser  allowed, 

(c)  If  taxable  articles  are  sold  and  thereafter  exchanged  for  other 
articles  which  are  not  taxable,  and  credit  or  refund  is  allowed  by 
tlie  dealer  therefor,  no  tax  is  payable  on  the  first  or  second  sale ;  and 
if  already  paid,  the  tax  on  the  first  sale  may  be  refunded  to  the  pur- 
chaser and  the  dealer  may  take  credit  therefor  in  the  return  for 
the  month  in  which  the  tax  is  refunded  or  credit  is  allowed  to  the 
purchaser. 

As  to  records  to  be  kept,  see  article  33. 

Art.  9.  When  tax  attaches. — The  tax  attaches  when  the  article  is 
sold:  that  is  to  say,  wlien  the  title  to  it  passes  from  the  dealer  to 
the  purchaser  pursuant  to  a  previous  contract  of  sale  or  upon  at 
sale  without  previous  contract.  When  title  passes  is  a  question 
of  fact  de])endent  upon  the  intention  of  the  parties  as  gathered 
from  the  contract  of  sale  and  the  attendant  circumstance^?.  Where 
goods  are  segregated  from  other  goods  owned  by  the  dealer  and  it 
i-s  the  intention  of  both  the  dealer  and  the  purchaser  at  the  time 
the  goods  are  segregated  that  they  shall  then  belong  to  the  pur- 
chaser, the  title  will  be  presimied  to  pass  at  such  time.  In  the  ab- 
sence of  an  intention  to  the  contrary  the  title  is  presumed  to  pass 
upon  delivery  of  the  article  to  the  purchaser  or  to  a  carrier  for  the 
purchaser.  In  the  case  of  a  conditional  sale,  where  the  title  is  re- 
served in  the  dealer  until  payment  of  the  purchase  price  in  full, 
the  tax  attaches  (a)  upon  such  payment,  or  (b)  when  title  passes  if 
before  completion  of  the  payments,  or  (c)  when,  before  completion 
of  the  payments,  the  dealer  disposes  of  the  sale  by  charging  off,  by 
any  method  of  accounting  he  may  adopt,  the  unpaid  portion  of  the 
contract  price. 

Art.  10.  Sales  to  a  State  or  subdivision  thereof. — Articles  sold  to  a 
State  or  political  subdivision  thereof  for  use  in  carrying  on  its  gov- 
ernmental operations,  or  to  a  State,  cmmty,  or  municipal  institution, 
are,  when  paid  for  entirely  out  of  public  moneys,  exemi)t  from  tax. 

Art.  11.  Second  hand  articles. — Articles  coming  within  the  enumera- 
tion of  section  904  are  not  exempt  from  taxation  when  sold  by  a 
dealer  for  consumption  or  use  at  second  hand,  or  after  being  used, 


\ 


§004  EXCISE   TAXES   ON   SALES   BY   THE   DEALER.  9 

but  tax  shall  be  paid  upon  the  taxable  portion  of  the  purchase  price 
for  which  sold. 

Art.  12.  Repairs  and  alterations. — Ordinary  repairs  or  alterations 
are  not  taxable.  If,  however,  the  cost  of  making-  alterations  is  in- 
cluded in  the  price  of  an  article  sold  for  consumption  or  use,  the 
total  price  must  be  considered  in  computing  the  tax. 

ARTICLES  SUBJECT  TO  TAX. 

(1)  Carpets  ami  rugs,  including  fiber,  except  imported  and  Amer- 
ican rugs  made  principally  of  wool,  on  the  amount  in  excess  of  .$5  per 
square  yard. 

AuT.  13.  For  the  purpose  of  the  tax,  carpets  and  rugs  shall  in- 
clude all  merchandise  commonly  or  connnercially  known  as  carpets, 
rugs,  or  matting,  either  woven  or  felted,  and  whether  used  as  floor 
coverings  or  otherwise,  or  mats  when  used  as  floor  covering. 

The  act  expressly  exempts  from  taxation  imported  and  American 
rugs  made  principally  of  wool.  The  words,  "■  made  principally  of 
wool,"  shall  be  deemed  to  niGJin  that  the  wool  therein  is  the  chief 
component  material  in  value,  Aveight,  and  bulk.  Rugs  made  of  silk, 
fiber,  cotton,  jute,  linen,  hemp,  grasses  of  any  kind,  or  straw,  or  any 
other  material  other  than  principally  of  wool,  are  subject  to  tax. 

A  rug  shall  be  held  to  be  distinguishable  from  carpet  when  man- 
ufactured as  one  piece  or  made  by  the  manufacturer  from  breadths 
which  are  imited  so  as  to  form  one  piece,  of  a  distinctive  manufac- 
ture, size,  shape  and  design,  figured  or  plain.  Carpet,  when  sold 
by  the  yard  and  sewed  together  so  as  to  produce  a  certain  size  or  de- 
sign desired  by  the  purchaser,  shall  not  be  deemed  to  be  a  rug  within 
the  meaning  of  the  act,  and  is  taxable,  even  though  made  principally 
of  wool. 

The  unit  of  measurement  is  the  square  yard.  Therefore  the  size 
of  a  rug  or  the  quantity  of  carpet  shall  be  so  calculated  as  to  be 
capable  of  applying  the  tax  thereto  at  so  much  per  square  j^ard.  All 
lineal  yardage,  Avhether  the  strips  be  wider  or  narrower  than  36 
inches,  must  bo  converted  into  square  measure.  For  example,  a 
lineal  A^ard  of  carpet  of  the  ordinary'-  Avidth  of  27  inches  contains 
but  three-quarters  of  a  square  yard.  If  such  carpet  is  sold  for  more 
than  $3.75  per  lineal  yard,  it  is  taxable,  because  $3.75  per  lineal  yard 
is  equivalent  to  $5  per  square  yard.  Fringe  will  not  be  considered 
in  computing  the  yardage. 

If  carpet  is  sold  at  a  specified  price  per  j^ard  and  such  price  in- 
cludes sewing,  sizing,  or  laying,  the  tax  shall  attach  to  the  combined 
price  in  excess  of  $5  per  square  yard,  unless  the  sewing,  sizing,  or 
laying  is  billed  separately,  in  which  case  the  tax  attaches  only  to  the 
price  of  the  carpet  in  excess  of  $5  per  square  yard. 


10  EXCISE  TAXES   ON   SALES  BY   THE   DEALER.  §  f»04 

Eu'ceptJ-ons. — Carpets  and  rugs  which  are  (1)  sold  for  $5  or  less 
per  s(]uare  yard,  or  which  are  (2)  made  of  fur  on  the  hide  or  pelt,  or 
of  which  such  fur  is  the  component  material  of  chief  value,  are  not 
subject  to  this  tax,  but  see  article  32. 

(2)  Pictxxre  frames  on  the  amoiiut  in  excess  c»f  $10  each. 

Art.  14.  For  the  purpose  of  the  tax,  picture  frames  shall  include 
shadow  boxes  and  any  frame  primarily  adapted  for  framing  a  pic- 
lure,  irrespectiAe  of  the  use  to  which  actually  put.  Where  the  glass, 
mat,  an.d  frame  or  shadoAv  box,  are  sold  as  one  item,  the  tax  attaches 
to  the  amount  for  which  so  sold  in  excess  of  $10.  If  a  painting  and 
frame  are  sold  as  one  item,  the  10  per  cent  tax  imposed  b}'  section 
902  of  the  act  on  paintings  applies  to  the  total  selling  price  and  the 
tax  on  frames  will  not  apply.  See  article  32;  also  see  article  16, 
regulations  48.  If  a  frame  and  picture  or  other  thing  framed,  not 
a  painting,  jire  sold  as  one  item,  the  tax  shall  be  computed  upon  the 
value  of  the  frame  and  object  framed,  unless  the  value  of  the  frame 
can  be  separately  determined,  in  which  case  the  tax  shall  be  com- 
puted upon  the  ^•alue  of  the  frame. 

Ecccepf fans. —Picture  frames  which  are  sold  for  $10  or  less  each,  or 
which  are  made  of,  or  ornamented,  mounted,  or  fitted  with  precioits 
metals  or  imitations  thereof,  or  ivory,  arc  not  subject  to  this  tax,  but 
see  article  32.  The  exception  with  respect  to  articles  made  of  or 
ornamented,  mounted,  or  fitted  with  precious  metKals  or  imitations 
thereof,  or  ivory,  does  not  apply  to  frames  merely  ornamented  or 
overlaid  with  gold  or  silver  leaf  or  paint,  which  are  subject  to  tas 
under  these  regulations  as  frames. 

(3)  Trunks,  on  the  auioxuit  in  excess  of  .$50  each. 

Art.  15.  For  the  purpose  of  the  tax  the  term  "•  trunks '"  shall  be 
lield  to  include  all  receptacles  which  are  commonly  or  commercially 
designated  as  trunks,  designed  to  be  used  wherein  to  convey  the  ef- 
fects of  a  traveler.  It  shall  not,  however,  be  held  to  include  articles 
such  as  hampers,  packing  boxes  or  cases,  nor  chests  designed  to  be 
used  wherein  to  convey  tools,  medicine,  or  silver. 

Except io7is. — Trunks  which  are  made  of,  or  ornamented,  mounted, 
or  fitted  Avith  precious  metals  or  imitations  thereof,  or  i\ory,  or 
which  are  sold  for  $50  or  less  each,  are  not  subject  to  this  tax.  but 
see  article  32. 

(4)  Valises,  traveling  batis.  suit  cases,  hat  boxes  used  by  travelers, 
and  fitted  toilet  cases,  on  the  amount  iu  excess  of  $25  each. 

Art.  16.  For  the  purposes  of  the  tax  valises,  traveling  bags,  and 
suit  cases  shall  include  all  receptacles  wliich  are  commonly  or  com- 
mercially de.signated  as  such  or  designed  to  be  used  wherein  to  carry 


§004  EXCISE   TAXES   ON   SALES   BY   THE   DEALER.  H 

in  the  hand  the  effects  of  a  traveler.  Hat  boxes  shall  include  any 
receptacle  designed  to  be  used  wherein  to  convey  hats  in  traveling. 
Fitted  toilet  cases  shall  not  be  limited  in  meaning  to  those  designed 
and  used  for  traveling  purposes,  but  shall  include  all  receptacles  of 
any  form  whatsoever  (other  than  purses,  pocketbooks,  shopping  and 
hand  bags,  as  defined  in  art.  17)  designed  and  fitted  to  contain 
toilet  articles. 

Exceptions. — Valises,  traveling  bags,  suit  cases,  and  hat  boxes,  as 
above  defined,  and  fitted  toilet  cases,  which  are  sold  for  $25  or  less 
each,  or  Avhich  are  made  of,  or  ornamented,  mounted,  or  fitted  with 
precious  metals  or  imitations  thereof,  or  ivor}^,  are  not  subject  to  this 
tax,  but  see  art.  32. 

(5)  Purses,  pocketbooks,   slioppinj;-  und  hand  bags,  on  the  amount 
iu  excess  of  .$7.50  each. 

Art.  17.  For  the  purpose  of  the  tax  purses  shall  be  deemed  to  in- 
clude all  receptacles  used  for  carrying  money  on  or  about  the  person. 
The  term  "  pocketbook  "  is  broader  in  meaning  than  "  purse,"  and 
includes  any  receptacle  other  than  a  purse  for  carrying  money, 
papers,  cards,  memoranda,  etc.,  in  the  pocket  or  on  or  about  the  person. 
The  term  "  shopping  and  hand  bags  "  shall  include  all  bags,  whether 
or  not  fitted  with  toilet  articles,  designed  to  be  carried  in  the  hand 
or  on  the  arm  for  the  purpose  of  conveying  commodities  or  personal 
effects;  but  it  shall  not  include  articles  such  as  valises,  traA'eling  bags, 
suit  cases,  and  fitted  toilet  cases  mentioned  in  article  16.  The  fact 
that  a  purse,  pocketbook,  hand  or  shopping  bag  is  fitted  with  or 
for  toilet  articles  does  not  take  it  from  this  subdivision  nor  make  it 
taxable  under  the  provisions  of  article  16. 

Exceptions. — Purses,  pocketbooks,  shopping  and  hand  bags  which 
are  (1)  sold  for  $7.50  or  less  each,  or  which  are  (2)  made  of,  or 
ornamented,  mounted,  or  fitted  with  precious  metals  or  imitations 
thereof,  or  ivory,  or  (3)  made  of  fur  on  the  hide  or  pelt,  or  of 
which  any  such  fur  is  the  component  material  of  chief  value,  are 
not  subject  to  this  tax,  but  see  art.  32. 

(C)   Portable    lighting   fixtures,    including   lamps    of   all    kinds    and 
lamp  shades,  on  the  amount  in  excess  of  .$2.5  each. 

Art.  18.  For  the  purpose  of  the  tax,  portable  lighting  fixtures  and 
portable  lamps  shall  be  deemed  to  include  all  lighting  devices  adapted 
for  interior  illumination  and  not  designed  to  be  affixed  permanently 
in  one  location  and  all  articles  commonly  or  comuiercially  known 
as  such,  irrespective  of  the  principle  of  illumination  used,  A  port- 
able lamp  and  shade  sold  jointly  will  be  regarded  as  a  single  item, 
for  taxing  purposes,  but  a  shade  pertaining  to  a  portable  lamp 
or  lighting  fixture,  if  sold  sepaxately,  will  be  taxable. 


12  EXCISE  TAXES   ON   SALES   BY  THE  DEALER.  §  &04 

Ea-ceptions. — Portable  ligliting  fixtures,  lamps,  and  lamp  shadas 
Avliich  are  sold  for  $25  or  less  each,  or  which  are.  made  of,  or  orna-. 
monted,  mountpd.,  or  fitted  with  precious  metals,  or  imitations  thereof, 
or  i\orv,  are  not  subject  to  this  tax,  but  see  article  32. 

(7)  I^mbrellas,  parasols,  and  sun  shades,  on  the  amount  in  excess  of 
%4i  each. 

Art.  19.  For  the  purpose  of  the  tax.  umbrellas,  parasols,  and  sun 
shades  shall  be  deemed  to  include  all  portable  or  collapsible  deviceis 
primarily  adapted  to  protect  the  person  from  the  rain  or  sun,  and 
can-ied  in  the  hand,  and  those  of  similar  design  and  character 
attached  to  vehicles,  etc. 

Exceptions. — Umbrellas,  parasols,  and  sun  shades  which  are  sold 
for  $4  or  Jess  each,  or  which  are  made  of,  or  ornamented,  mounted, 
or  fitted  with  precious  metals  or  imitations  thereof,  or  ivory,  are  not 
subject  to  this  tax,  but  see  art.  32. 

(8)  Fans,  on  tbe  amount  in  excess  of  ?1  each. 

At?t.  20.  For  the  purpose  of  the  tax,  fans  shall  be  deemed  u>  in- 
clude those  articles  connvionly  or  commercially  known  by  this  name, 
desigiied  to  produce  movements  of  the  air  by  waving-  iu  the  hand. 

'£',rr^/-»f/«9??,s.-^FaTis  which  are  (1)  sold  for  $1  or  less  each,  or  whicli 
are  (2)  made  of,  or  ornamented,  mounted,  or  fitted  with  precious 
metals  or  imitations  thereof,  or  ivory,  or  (3)  made  of  fur  on  the  hide 
or  pelt,  or  of  which  any  such  fur  is  the  component  material  of  chief 
value,  are  not  taxable  under  this  subdivision,  but  see  art.  32. 

(•)i   House  or  smoking  coats  or  jackets,  and  hath  or  k)unging  robes, 
on  tbe  amount  in  excess  of  $7.50  each. 

Art.  21.  For  the  purpose  of  the  tax,  house  and  smoking  coats  or 
jackets,  and  bath  robes  shall  include  all  garments  which  are  com- 
monly or  commercially  known  by  these  designations.  "Loiuiging 
robes''  shall  include  all  other  men's  and  women's  garments  (except 
kimonos  as  defined  in  aiticle  31),  designed  for  indoor  wear  only,  as 
negligee  robes;  thus,  breakfast  coats,  boudoir  gowns,  tea  gowns,  etc., 
are  taxable  as  lounging  robes,  imless  clearly  embraced  within  the 
definition  of  a  kimono. 

E.rcepfionf<. — House  or  smoking  jackets,  and  bath  or  lounging 
robes  which  are  sold  for  $7.50  or  less  each,  or  which  are  made  of  fur 
on  the  hide  or  pelt,  or  of  which  any  such  fur  is  the  component  ma- 
terial of  chief  value,  are  not  subject  to  this  tax,  but  see  art.  32. 

(10)   Men's  waistcoats,  sold  separately  from   suits,  on  tbe  amount 
in  excess  of  $5  each.        '  ''■    •" 

Art.  22.  For  the  purpose  of  the  tax,  men's  waistcoats  (otherwise 
termed  "  vests")  shall  include  all  articles;  commonlj'  or  commercially 
known  as  such,  when  sold  sej^arately  from  suits. 


§904         EXCISE  TAXES  ON  SALES  BY  THE  DEALER.  13 

Exceptions. — Men's  waistcoats  (1)  Avhich  are  sold  for  $5  or  less 
each,  or  (2)  which  are  made  of  fur  on  the  hide  or  pelt,  or  of  which 
any  such  fur  is  the  component  material  of  chief  value,  or  (3)  which 
are  designed  and  primarily  adaptable  as  a  part  of  a  livery,  or  (4) 
■v\{hich  are  designed  and  primarily  adaptable  as  a  hunting  or  shooting 
garment,  or  as  a  part  of  a  riding  habit,  are  not  subject  to  this  tax, 
but  see  art.  32. 

(11)  Women's  and  misses'  huts,  bonnets,  and  hoods,  on  the  amount 
in  excess  of  $15  each. 

Art.  23.  For  the  purpose  of  the  tax,  Avomen's  and  misses'  hats, 
bonnets,  and  hoods  include  all  such  articles  as  are  commonly  or  com- 
riiercially  known  by  any  of  these  designations,  and  all  hats,  bonnets, 
ar^l  hoods  designed  to  be  worn  by  women  and  misses  14  years  of  age 
or  older. 

Exceptions. — AVomen's  and  misses'  hats,  bonnets,  and  hoods  (1) 
which  arc  sold  for  $15  or  less  each,  or  (2)  which  are  made  of  fur 
on  the  hide  or  pelt,  or  of  which  such  fur  is  the  component  material 
of  chief  value,  or  (3)  Avhich  are  designed  and  pirmarily  adaptable 
as  a  part  of  a  livery,  or  (-1)  which  are  designed  and  primarily  adapt- 
able for  use  as  a  hunting  or  shooting  garment  or  as  a  part  of  a  riding 
habit,  are  not  subject  to  this  tax,  but  see  art.  32. 

(12)  ]\Ien's  and  l)oys'  hats,  on  the  amount  in  excess 'of  $5  each. 

Art.  24.  For  the  purpose  of  the  tax,  men's  and  boys'  hats  shall 
include  any  headdress  designed  to  be  worn  by  men,  and  any  head- 
dress designed  to  be  worn  by  boys  of  6  years  of  age  or  older,  or  of  sizes 
G|  and  larger,  which  are  counnonly  and  commercially  known  as  hats. 

Exceptions. — Men's  and  boys'  hats  (1)  which  are  sold  for  $5  or 
less  each,  or  (2)  which  are  made  of  fur  on  the  hide  or  pelt,  or  of 
which  an}'  such  fur  is  the  component  material  of  chief  value,  «r  (3) 
which  are  designed  and  primarily  adaptaljle  as  a  part  of  a  livery, 
or  (4)  which  are  designed  and  primarily  adaptable  as  a  hunting 
or  shooting  garment,  or  as  a  part  of  a  riding  habit,  are  not  subject 
to  this  tax,  but  see  article  32. 

(13)  IMen's  and  boys'   caps,  on   the  amount  in  excess  of  $2   each. 

Art.  25.  For  the  purpose  of  the  tax,  men's  and  boys'  caps  shall 
include  all  articles  worn  by  men,  commonly  and  oonnnercially  known 
as  caps,  having  a  visor  but  no  brim,  and  all  such  articles  designed 
to  be  worn  by  boys  G  years  of  age  or  older,  or  sizes  6^  and  larger. 

Exceptions. — Men's  and  boys'  caps  (1)  which  are  sold  for  $2  or 
less  each,  or  (2)  which  are  made  of  fur  on  the  hide  or  pelt,  or  of 
which  any  such  fur  is  the  component  material  or  chief  value,  or  (3) 
which  are  designed  and  primarily  adaptable  as  a  hunting  or  shoot- 
ing garment,  or  (4)  as  a  part  of  a  riding  habit,  are  not  subject  to  this 
tax,  but  see  article  32. 


14  EXCISE  TAXES  ON   SALES  BY  THE  DEALER.  1 904 

(14)  Men's,  women's,  misses',  and  boys'  boots,  shoes,  pumps,  and 
slippers,  not  including  shoes  or  appliances  made  to  order  for  any  per- 
son having  a  crippled  or  deformed  foot  or  ankle,  on  the  amount  in  ex- 
cess of  $10  per  pair. 

Art.  26.  For  the  purpose  of  the  tax,  men's  and  women's  boots, 
shoes,  pumps,  and  slippers  shall  include  all  articles  of  whatever  ma- 
terial made,  commonly  or  commercially  known  by  any  of  these 
designations.  Similar  articles  for  boys  of  G  years  of  age  and  older 
or  of  sizes  1  and  larger,  and  for  misses  of  14  j'cars  of  age  and  over  or 
of  sizes  11  and  larger,  are  taxable. 

Shoes,  boots,  etc.,  although  having  buckles  or  other  ornaments  of 
precious  metal,  imitation  thereof,  or  ivory,  attached,  are  subject  to 
this  tax  on  the  entire  value  in  excess  of  $10  per  pair,  the  ornaments 
not  being  subject  to  tax  separately.  If  buckles  or  other  such  orna- 
ments are  sold  separately  and  afterwards  attached,  the  ornaments 
will  be  subject  to  tax  separately  while  the  shoes,  boots,  etc.,  will 
be  taxable  as  such  on  the  amount  for  which  sold  in  excess  of  $10.  As 
to  the  rate  of  tax  applicable  to  ornaments  made  of  precious  metals,  or 
imitations  tliereof ,  see  article  32. 

ExcejMons. — The  above  mentioned  articles  which  are  (1)  sold  for 
$10  or  less  per  pair,  or  (2)  which  are  made  of  fur  on  the  hide  or  pelt, 
or  of  which  such  fur  is  the  component  material  of  chief  Aalue,  or 
(8)  which  are  designed  and  primarily  adapted  as  part  of  a  livery, 
are  not  subject  to  this  tax,  but  see  article  32. 

Express  exemption  from  taxation  under  this  subdivision  is  made 
of  any  shoe  or  appliance  made  to  order  for  any  person  ha^'ing  a 
crippled  or  deformed  foot  or  ankle. 

(15)  Men's  and  boys'  neckties  and  neckwear,  on  the  amount  in  ex- 
cess of  $2  each. 

Art.  27.  For  the  purpose  of  the  tax,  men's  and  boys'  neckties  and 
neckwear  shall  include  cravats,  ties,  collars,  stocks,  neckerchiefs, 
mufflers,  scarfs,  and  other  articles  of  neckwear,  by  whatever  name 
known,  designed  to  be  worn  by  men  or  boys  of  G  years  of  age  and 
over. 

Excepti-ons. — Men's  and  boys'  neckties  and  articles  of  neckwear 
(1)  which  are  sold  for  $2  or  less  each,  or  (2)  which  are  made  of  fur 
on  the  hide  or  pelt,  or  of  which  any  such  fur  is  the  component  ma- 
terial of  chief  value,  are  not  subject  to  this  tax,  but  see  article  32. 

(16)  Men's  and  boys'  silk  stockings  or  hose,  on  the  amount  in  ex- 
cess of  $1  per  pair. 

(17)  Women's  and  misses'  silk  stockings  or  hose,  on  the  amount  in 
excess  of  .$2  per  pair. 

Art.  28.  The  tax  is  on  men's  and  boys'  silk  stockings  or  hose,  on 
the  amount  in  excess  of  $1  per  pair,  and  women's  and  misses'  silk 
stockmgK  or  hose,  on  the  amount  in  excess  of  $2  per  pair.    The  tax 


1004  EXCISE  TAXES   ON   SALES  BY  THE  DE^M^ER.  15 

attaches  to  stockings  and  hose  for  men  and  women,  misses  14  years 
of  age  and  older,  and  boys  of  6  years  of  age  and  older,  including,  in 
the  case  of  female  attire,  all  stockings  and  hose  of  sizes  8  and  larger, 
and  in  the  case  of  boys,  all  stockings  and  hose  of  sizes  7  and  larger. 

(18)  Men's  shirts,  on  the  amount  in  excess  of  .$3  each. 

Art.  29.  For  the  purpose  of  the  tax,  men's  shirts  shall  include  all 
garments  commonly  or  commercially  knoAvn  as  such,  of  whatever 
material  made,  but  shall  not  include  undershirts  taxable  as  under- 
wear. 

Exceptions. — Shirts  sold  for  $3  or  less  each  are  not  subject  to  this 
tax ;  also  see  article  32. 

(19)  Men'^,  women's,  misses',  and  boys'  pajamas,  nightgowns,  and 
underwear,  on  the  amount  in  excess  of  $5  each. 

Art.  30.  For  the  purpose  of  the  tax,  men's,  women's,  misses',  and 
boys'  pajamas  and  nightgowns  shall  include  any  garment  commonly 
or  com>nercially  known  by  any  of  these  designations  for  men  or 
women,  for  misses  14  years  of  age  and  older,  and  f©r  boys  G  years 
of  age  and  older,  including  in  the  case  of  boys,  sizes  G  and  larger. 

Underwear  shall  include  any  garment  worn  under  the  outer  dress, 
such  as  undei-sliirts,  drawers,  pants,  bloomers,  union  suits,  combina- 
tion suits,  tights,  camisoles,  corsets,  corset  covei"s,  brassieres,  chemises, 
and  vests.  This  list  is  by  no  means  intended  to  be  exhaustive,  but 
merely  to  give  a  general  notion  of  the  wide  Aariety  of  articles  taxable. 
Petticoats  and  underskirts,  whicli  are  specially  taxed  under  subdi- 
vision (20)  of  section  904,  are  not  taxa})le  under  this  subdivision. 
(8ee  art.  31  of  these  Regulations.) 

Ed'ceptions. — Any  of  the  above  enumerated  articles  which  are  sold 
for  $5  or  less  each,  or  which  are  made  of  fur  on  the  hide  or  ])elt,  or 
of  Avhich  any  such  fur  is  the  component  material  of  chief  value  are 
not  subject  to  this  tax,  but  see  article  32. 

(20)  Kimonos,  petticoats,  and  waists,  on  the  amount  in  excess  of 
$15  each. 

Art.  31.  For  the  purpose  of  the  tax,  kimonos  shall  include  (1) 
all  garments  commonly  or  commercially  known  as  Idmonos,  and  (2) 
all  apparel  made  in  accordance  with  the  so-called  Japanese  style  of 
garment  and  not  a  modification  thereof,  such  as  is  taxable  under 
article  21.  Petticoats  and  waists  shall  include  underskirts  and  all 
kinds  of  waists,  whether  for  outer  wear  or  for  wear  under  another 
outer  garment,  and  all  other  garments  commonly  or  commercially 
known  by  these  designations. 

Exceptions. — Any  of  the  above  enumerated  articles  which  are  sold 
for  $15  or  less  each,  or  which  are  made  of  fur  on  the  hide  or  pelt,  or 
of  which  such  fur  is  the  component  material  of  chief  value  are  not 
subject  to  this  tax,  but  see  article  32. 


16  EXCISE  TAXES   ON   SALES  BY  THE  DEALER.  f  904 

EXCEPTIONS. 

Skc.  004  (b).  Tln>  tnx  iinposod  by  this  seotiou  shall  not  npply  (1)  to 
any  nrtielc  i'niiiir<>rntefl  in  paragraphs  (2)  to  (8),  both  inclusive,  of  sul>- 
ilivision  (a),  if  such  article  is  made  of,  or  ornuniented,  mounted,  or 
fitted  with,  precious  metals  or  imitations  thereof  or  ivory,  or  (2)  to 
any  article  made  of  fur  on  the  hide  or  pelt,  or  of  which  any  such  fur 
is  the  component  material  of  chief  vahie,  or  to  (3)  any  article  enu- 
merated in  subdivision  (17)  or  (18)  of  section  900. 

Art.  32.  When  an  article  is  within  the  language  of  two  or  more 
sections  of  the  statute,  bj^  each  of  Avhich  a  tax  is  imposed,  the  article 
shall  not  be  doubly  taxed,  but  shall,  as  a  general  rule,  be  held  taxable 
under  that  section  Avhich  contains  the  more  specific  description;  thus, 
subdivision  14  of  section  904  (a)  imposes  a  tax  on  shq^s  and  section 
90a  imposes  a  tax  on  articles  made  of,  or  ornamented,  mounted,  or 
fitted  with  precious  metals  or  imitations  thereof,  or  ivorv.  A  pair 
of  leather  shoes  ornamented  with  gold  buckles  would  fall  v.ithin  the, 
terms  of  both  these  sections;  but  the  description  ''shoes."  being  the. 
more  specific,  would  be  the  controlling  description  for  taxable  pur- 
poses.    (See  art.  26  of  these  Regulations.) 

While  this  is  the  general  rule,  the  statute  makes  certain  broad 
exceptions.  As  an  illustration  of  the  exceptions  made  by  the  statute? 
the  case  of  fans  may  be  taken.  Fans  are  taxable  as  such  imder  para- 
graph (8)  of  section  904  (a).  They  are  also  within  the  language 
of  section  905  when  tnade  of,  or  ornamented,  mounted,  or  fitted  with 
precious  metals  or  imitations  thereof,  or  ivory.  In  the  absence  of 
statutory  provision  to  the  contrary  the  description  '•"  fans.''  being  the 
more  specific,  would  control,  bu.t  subdivision  (b)  of  section  904 
specifically  provides  that  articles  enumerated  in  paragraphs  (2) 
to  (8),  both  inclusive,  of  section  i)04  (a),  when  made  of,  or  orna- 
mented, mounted,  or  fitted  with  precious  metals  or  iiuitations  thereof, 
or  ivory,  shall  not  be  subject  to  the  tax  imposed  by  section  904;  and 
this  specific  exclusion  (so  far  as  the  articles  which  it  covers  are  cou- 
cerned)  reverses  the  above-mentioned  general  rule,  and  makes  the  less 
specific  description  apply.  For  instance,  a  fan,  being  one  of  the 
articles  specifically  exempted  from  taxation  luider  section  904,  when 
made  of,  or  ornamented,  mounted,  or  fitted  with  precious  metals  or 
imitations  thereof,  or  ivory,  is  taxable  imder  section  905  at  the  rate  of 
5  per  cent  of  the  full  sales  price  and  not  under  subdivision  (8)  of 
section  904  (a).  (See  art.  20  of  these  Eegulations.)  And  any  other 
article  which  is  made  of,  or  ornamented,  mounted,  or  fitted  with 
precious  metals  or  imitations  thereof,  or  ivory,  if  it  is  one  of  the 
articles  enumerated  in  paragraphs  (2)  to  (8),  inclusive,  of  section  904 
(a)  (arts.  14  to  20,  inclusive,  of  these  Regulations),  is  not  subject  to 
tax  under  section  904.  Of  course,  a  fan  or  any  other  article  enumer- 
ated in  paragraphs  (2)  to  (8),  inclusive,  of  section  904,  which  is  not 


§904  EXCISE   TAXES   ON^   S.iLES   BY  THE   DEALER.  17 

made  of,  or  ornamented,  mounted,  or  fitted  with  precious  luetals  or 
imitations  thereof,  or  ivory,  and  which  is  not  within  either  of  the 
other  exceptions  made  by  section  904  (b) ,  is  taxable  under  section  004. 

Of  the  other  exceptions  made  by  section  904  (b),  one  rehites  to 
articles  made  of  fur  on  the  hide  or  pelt,  or  of  which  an^^  such  fur  is 
the  component  material  of  chief  value  (an  article  will  not  be  re- 
garded as  within  this  exception  unless  fur  is  that  component  material 
which  is  not  exceeded  in  value  by  any  other  single  component  ma- 
terial in  the  ailicle;  the  other  relates  to  articles  enumerated  in  subdi- 
visions (IT)  and  (18)  of  section  900.  Of  these  two  subdivisions,  (17) 
relates  to  liveries  and  livery  boots  and  hats,  and  (18)  relates  to  hunt- 
ing and  shooting  garments  and  riding  habits.  These  exceptions  are 
not  limited  to  any  particular  subdivisions  of  section  904  (a),  but  re- 
late to  them  all.  Therefore  any  article  whatever,  which  is  made  prm- 
cipaliy  of  fur  on  the  hide  or  pelt,  or  of  which  any  such  fur  is  the  com- 
ponent material  of  chief  value,  or  which  is  enumerated  in  subdivision 
(IT)  of  section  900  of  the  statute,  covering  liveries  and  liverj'  boots 
and  hats,  or  in  subdivision  (18)  of  section  900,  covering  hunting  and 
shooting  g-a rments  and  riding  habits,  is  not  subject  to  tax  under  these 
Regulations,  but  to  the  10  per  cent  tax  on  the  full  sales  price  imposed 
by  section  900  of  the  statute.  (See  arts.  29,  30,  and  31  of  Eegulations 
No.  47.) 

It  will  sometimes  happen  that  the  same  article  is  within  more  than 
one  of  the  exceptions  specified  by  section  904  (b)  of  the  statute.  The 
rule,  that  the  more  specific  description  governs,  again  applies.  Either 
of  the  other  designations  (that  is,  furs,  liveries,  or  hunting  gar- 
ments) co\ered  by  the  several  exceptions,  is  more  specific  than  that 
relating  to  articles  made  of,  or  ornamented,  mounted,  or  fitted  with, 
precious  metals  or  imitations  thereof,  or  ivory.  This  latter  is  also 
the  only  designation  covering  a  tax  of  5  per  cent  on  the  full  sales 
price.  All  the  other  designations  covered  by  the  exceptions  cover  a 
tax  of  10  per  cent  on  the  full  sales  price.  It  accordingly  follows  that 
if  any  article  is  within  more  than  one  exception  specified  by  sec. 
904  (b),  it  is  subject  to  a  10  per  cent  tax  on  its  full  sales  price.  It  is 
only  when  it  is  within  the  exception  relating  to  articles  made  of,  or 
ornamented,  mounted,  or  fitted  with  precious  metals,  or  imitations 
thereof,  or  ivory,  solely,  that  the  tax  at  the  rate  of  5  per  cent  on  the 
full  sales  price  applies.  Take,  for  example,  purses.  A  leather  purse 
without  ornaments  of  precious  metal,  etc.,  Avould  not  be  within  any 
of  the  exceptions  and  if  sold  for  more  than  $T.50  would  be  taxable 
on  the  excess  of  the  sales  price  over  that  amount,  under  paragraph 
(5)  of  section  904  (a),  simply  as  a  purse.  Next,  take  a  leather  purse 
with  gold  ornaments.  The  gold  ornaments  would  bring  it  within 
the  exception  relating  to  articles  ornamented  with  precious  metats, 


18  EXCISE  TAXES  ON  SALES  BY  THE  DEALER.         $904 

etc.,  and  it  would,  therefore,  be  subject  to  tax  of  5  per  cent  of  the 
full  sales  price.  Now,  take  a  purse  made  principally  of  fur,  or  of 
which  fur  is  the  component  of  chief  value.  It  would  be  within 
the  exception  covering  articles  made  of  fur,  etc.,  and  would  be  sub- 
ject to  a  tax  of  10  per  cent  of  the  full  sales  price.  Even  though  this 
latter  purse  were  also  ornamented  with  precious  metals,  it  would 
still  be  subject  to  the  same  tax  as  an  article  made  of  fur,  sinee  the 
designation  covering  aiticles  made  of  fur  takes  precedence  over  that 
covering  articles  ornamented  with  precious  metals,  etc. 

In  short,  an  article  which  is  within  any  of  the  specific  designations 
of  section  904(a)  of  the  statute  is  .subject  to  the  tax  imj^osed  thereb}'. 
unless  it  is  covered  by  any  of  the  exceptions  enumerated  in  section 
904(b).  If  it  is  covered  by  the  exception  relating  to  articles  orna- 
mented with  precious  metals,  etc.,  it  is  not  subject  to  tax  under  sec- 
tion 904(a),  but  to  a  tax  of  5  per  cent  of  the  full  sales  price  under 
section  905,  If  it  is  within  either  of  the  other  exceptions,  even 
though  it  is  also  within  that  relating  to  articles  ornamented  with 
precious  metals,  etc.,  it  is  subject  to  a  tax  of  10  per  cent  of  the  full 
sales  price  under  section  900  of  the  statute. 

RETURN  AND  PAYMENT  OF  TAX. 

Sec.  904  (c).  The  taxes  imposed  by  this  section  sliall  be  puid  by  the 
piu'cliaser  to  the  vendor  at  the  time  of  the  sale  and  sliall  be  collected, 
returned,  and  paid  to  the  United  States  by  such  vendor  in  the  same 
manner  as  provided  in  section  502. 

Sec.  502.  That  each  person  receiving  any  payments  referred  to 
*  *  *  shall  collect  the  amount  of  the  tax,  if  any,  *  *  *  from 
the  person  making  such  payments,  and  shall  make  nunithly  returns 
under  oath,  in  duplicate,  and  pay  the  taxes  so  collected  *  *  *  to 
the  collector  of  the  district  in  which  the  principal  office  or  place  of 
business  is  located. 

1^  it  *  *  *  *  Hf 

The  returns  required  lUider  this  section  shall  contain  such  informa- 
tion, and  be  made  at  such  times  and  in  such  manner,  as  the  Connnis- 
sioner,  with  the  approval  of  the  Secretary,  may  by  regulation  prescribe. 

The  tax  shall,  without  assessment  by  the  Commissioner  or  notice 
from  the  collector,  be  due  and  payable  to  the  collector  at  the  time  so 
tixed  for  filing  the  return.  If  the  tax  is  not  paid  when  due,  there 
shall  be  added  as  part  of  the  tax  a  penalty  of  5  per  centum,  together 
with  interest  at  the  rate  of  1  per  centum  for  each  full  month,  from 
the  time  when  the  tax  became  due. 

Sec.  1309.  That  the  Connnissioner,  with  the  approval  of  the  Secre- 
tary, *  *  *  may  by  regulation  provide  that  any  return  required  by 
Titles  *  *  *  IX  *  *  *  to  be  under  oath  may,  if  the  amount  of 
the  tax  covered  thereby  is  not  in  excess  of  $10,  be  signed  or  acknowl- 
edged before  two  witTiesses  instead  of  under  oath. 

Art.  33.  Accordingly,  every  person  liable  for  the  tax  in  respect 
to  the  sale  of  any  of  the  articles  enumerated  in  section  904,  must  make 
montlily  returns  under  oath  in  duplicate  (except  that  if  the  amount 


§904  EXCISE  TAXES   ON   SALES   BY  THE   DEALER.  19 

of  the  tax  covered  therebj'^  is  not  in  excess  of  $10,  such  returns  may 
be  signed  and  acknowledged  before  two  witneijses  instead  of  under 
oath),  and  pay  the  taxes  imposed  on  such  articles  to  the  collector  of 
internal  revenue  for  the  district  in  \\'hich  his  principal  place  of  busi- 
ness is  located.  Branch  houses  should  in  general  make  reports  to  the 
parent  house,  which  is  required  to  include  the  sales  of  the  branch 
house  in  its  return.  An  itinerant  dealer  should  make  return  and  pay 
the  tax  to  the  collector  of  the  district  where  the  sales  are  made.  Tike 
returns  shall  be  made  on  Form  728  B.  Instructions  for  preparing 
the  return  will  be  found  on  the  back  of  the  form.  The  returns 
are  to  be  rendered  and  the  tax  paid  on  or  before  the  last  day 
of  each  month  covering  the  transactions  of  the  preceding  month,  the 
first  return  to  cover  all  transactions  from  May  1,  1919,  to  May  ?>1, 
1919,  both  inclusive,  and  to  be  made  on  or  before  June  30,  1919.  If 
the  tax  is  not  so  paid,  liability  to  the  5  per  cent  penalty  and  interest  at 
the  rate  of  1  per  cent  for  each  full  month,  from  the  time  when  the 
tax  becomes  due  will  be  incurred.  The  books  of  every  person  liable 
to  the  tax  shall  be  open  at  all  times  for  the  inspection  of  exam- 
ining interna l-re\enue  officers,  and  each  such  person  shall  keep 
an  account  showing  the  amount  of  tax  liability  upon  the  sales  of 
taxable  articles  and  the  credits  or  refunds  claimed  under  article  8  of 
these  regulations.  As  to  penalty  for  failure  to  file  return  in  time  and 
penalties  in  general,  see  article  41.  As  to  credits  for  overpayments, 
see  article  35. 

All  rulings  in  conflict  herewith  are  hereby  revoked. 

EXTENSION  OF  EXISTING  STATUTES. 

Sec.  1305.  Tliat  uU  adininistfative,  special,  or  .stamp  provision.'!  of 
law,  including:  tlie  law  relatiiic;  to  the  assessment  of  taxes,  so  far  a.=4 
applicablo,  are  hereby  extended  to  and  made  a  part  of  this  act,  and 
every  person  liable  to  any  tax  imposed  by  this  act,  or  for  the  collection 
thereof,  shall  keep  such  records  and  render,  under  oath,  such  statements 
and  returns,  and  shall  comply  with  such  regulations  as  the  Commis- 
sioner, with  the  approval  of  the  Secretary,  may  from  time  to  time  pre- 
.scribe. 

Whenever  in  the  judgment  of  the  Comaiissioner  necessary  he  may 
require  any  person,  by  notice  servetl  upon  liim,  to  make  a  return  or  .such 
statements  as  he  deems  suflicient  to  show  whether  or  not  such  per.son 
is  liable  to  tax. 

The  Commissioner,  for  the  purpose  of  ascerlaining  tlie  correctness 
of  any  return  or  for  the  purpose  of  making  a  return  where  none  has 
been  made,  is  hereby  authorized,  by  any  revenue  agent  or  insi>eclor 
designated  by  him  for  that  purpose,  to  examine  any  books,  papers, 
records,  or  memoranda  bearing  upon  the  matters  required  to  be  in- 
cluded in  the  return,  and  may  require  the  attendance  of  the  per.soii 
rendering  the  return  or  of  any  ofiicer  or  employee  of  such  person,  or 
the  attendance  of  any  otlier  person  having  knowledge  in  the  premises, 
and  may  take  his  testimony  with  reference  to  the  matter  required  by 
law  to  be  included  in  such  return,  with  power  to  administer  oaths  to 
such  person  or  persons. 


20  EXCISE   TAXES   ON    SALES   BY    THE   DEALER.  §  904 

AuT.  34.  Aids  to  collection  of  tax. — In  collecting  the  excise  taxes 
the  Commissioner  luis  the  benefit  of  all  existing  internal-revenue 
laws.  In  aid  of  the  enforcement  of  the  statute  the  Commissioner 
may  require  any  person  to  keep  specified  records,  to  render  returns 
and  statements  as  directed,  to  submit  himself  and  his  books  to 
examination,  and  to  comply  with  such  regulations  as  may  be  pre- 
scribed. As  to  returns,  records,  and  examinations,  see  article  33  and 
article  37.    See  further  sections  903  and  1312  (4)  of  the  statute. 

CREDITS  AND  REFUNDS. 

Sec.  1310.  (a)  That  in  the  case  of  any  overpayment  or  overcollection 
of  any  tax  iniiiosed  by  section  628  or  630  or  by  Title  V,  Title  YUl,  or 
Title  IX,  the  person  nialiing  such  overpayment  or  overcollection  may 
take  eretlit  therefor  against  taxes  due  upon  any  monthly  return,  aiul 
shall  make  refund  of  any  excessive  amount  oolleeted  by  him  upon 
proper  api)lieation  by  the  person  entitled. 

(b)  Wherever  in  this  act  a  tax  is  required  to  be  paid  by  the  pur- 
chaser to  the  vendor  at  the  time  of  a  sale,  and  such  sale  is  made  on 
credit,  then,  under  regulations  prescribed  by  the  connnissioner,  with 
the  appi-oval  of  the  Secretary,  the  tax  may,  at  the  option  of  the 
vendor,  be  retiK*ned  and  paid  by  him  to  tlie  United  States  as  if  paid 
to  him  by  the  purchaser  at  the  time  of  the  sale,  and  in  such  case  the 
vendor  shall  have  a  right  of  action  in  any  court  of  competent  juris- 
diction against  the  purchaser  for  the  amount  of  the  tax  so  returned  and 
paid  to  the  United  States. 

Art.  35.  Credits  and  refunds.— If  a  dealer  overpays  the  tax  due 
with  one  monthly  return,  he  may  take  credit  for  the  overpayment 
against  the  tax  due  with  a  succeeding  return.  See  articles  7  and  8. 
If  he  sells  on  credit,  he  shall  return  and  pay  the  tax  as  of  the  time  of 
the  sale,  but  uuiy  defer  collection  of  it  from  the  purchaser.  If  he 
does  so  he  may.  if  necessary,  sue  the  purchaser  to  recover  the  tax. 
See  article  8  as  to  refunds  to  purchasers.    See  article  33  as  to  returns. 

EXPORTS. 

Sec.  1310.  (c)  Under  such  rules  and  regulations  as  the  Commissioner 
with  the  approval  of  the  Secretary  may  prescribe,  the  taxes  imposed 
under  the  provisions  of  Titles  *  *  *  jx  shall  not  apply  in  respect 
to  articles  sold  *  *  *  f^y  export  and  in  due  course  so  exported. 
Under  such  rules  and  regulations  the  amount  of  any  internal-revenue 
tax  erroneously  or  illegally  collected  in  respect  to  exported  articles 
may  be  refunded.     *     *     * 

Art.  3G.  Exemption  of  export  sales. — The  tax  docs  not  attach  to  the 
sale  of  an  article  Avhich  is  either  (1)  shipped  direct  to  a  foreign  desti- 
nation by  the  dealer  himself  or  (2)  both  (a)  sold  by  him  for  export 
and  (b)  in  due  course  so  exported  by  the  purchaser.  Where  a  dealer 
at  the  time  an  article  is  sold  or  shipped  (whichever  is  prior)  has  in 


§904 


EXCISE   TAXES   ON   SALES   BY  THE   DEALER.  21 


his  possession  an  order  ov' Contract  of  sale  showinir  in  writiu<?  (1)  tliat 
the  dealer  is  to  export  the  article,  or  (2)  that  the  purchaser  is  bn-yinji: 
the  article'  in  order  to  export  it  prior  to  its  being  used,  there  is  a  pre- 
sumption that  the  sale  of  the  article  is  exempt  from  tax,  as  an  ex,port 
sale,  and  the  dealer  may,  foi-  a  period  of  six  months  from  the  date 
of  sale  or  shipment  (whichever  is  prior),  rely  on  such  presumption. 
This  temporary  presumption  becomes  a  permanent  presumption  upon 
the  dealer's  receiving  and  attaching  to  such  order  or  contract,  before 
the  termination  of  such  period  of  six  months,  due  "  proof  of  exporta- 
tion "  (see  article  37)  of  such  article.  On  the  other  hand,  if,  within 
such  period  of  six  months,  the  dealer  has  not  received  and  attached 
to  such  order  or  contract,  such  "  proof  of  exportation,"  then  the  tem- 
porary presumption  that  such  sale  is  an  export  sale  disappears,  and 
the  dealer  shall  include  a  tax  on  the  sale  of  such  article  in  his  return 
for  the  month  in  which  such  period  of  six  months  expires.  The  order 
itv  contract  of  sale  and  the  "  proof  of  exportation  "  must  be  preserved 
by  the  dealer  in  such  a  way  as  to  be  readily  accessible  for  inspection 
by  internal  revenue  officers.  No  sale  shall  be  considered  to  be  exempt 
from  tax  under  section  1310  (c)  of  the  act  unless  its  character  as  an 
export  sale  has  been  established  in  accordance  with  the  above  provi- 
sions. 

Art.  37.  Proof  of  exportation.— By  the  term  "  proof  of  exportation  " 
is  meant :  (1 )  x\n  affidavit  containing  the  following  information :  The 
name  and  address  of  the  dealer,  the  name  and  address  of  the  exporter 
(who,  if  not  the  dealer,  must  be  a  person  who  has  purchased  direct 
from  the  dealer),  the  respective  dates  of  the  sale  or  shipment  (which- 
ever is  prior)  and  exportation  of  the  article,  the  price  for  which  pur-" 
chased,  the  fact  that  the  article  has  been  exported  by  the  dealer  or 
original  purchaser  without  having  been  used,  the  name  of  the  place 
of  foreign  destination,  the  name  and  address  of  the  carrier  issuing  the 
export  bill  of  lading,  and  any  further  inforjnation  necessary  to  iden- 
tify the  article  sold  with  the  article  exported;  and,  (2)  attached  to 
such  affidavit,  a  copy  of  the  export  bill  of  lading  or  a  certificate  by 
the  agent  or  representative  of  the  export  carrier  showing  the  exporta- 
tion of  the  article,  or,  if  exported  by  parcels  post,  a  copy  of  the  certifi- 
cate of  mailing. 

FRACTIONAL  PART  OF  CENT. 

Sec.  1318.  That  in  tlic  payuient  of  any  tax  under  this  act  not  payable 
by  stamp  a  fractional  part  of  a  t-ent  shall  be  disregarded  unless  it 
amounts  to  nne-lialf  cent  or  more,  in  which  case  it  shnl!  be  increMse(< 
to  1  cent. 

Art.  38.  When  fractional  part  of  cent  may  be  disregarded. — Tn  the 
payment  of  taxes,  and  in  each  step  or  computation  necessary  in  de- 
termining the  amount  of  the  tax,  a  fractional  part  of  a  cent  may  be 


22  EXCISE  TAXES  ON  SALES  BY  THE  DEALER.         §904 

disregarded  unless  it  nmounts  to  one-lialf  cent  or  more,  iu  which 
case  it  shall  be  increased  to  1  cent. 

MEDIUM  OF  PAYMENT  OF  TAX. 

Sec.  1314.  That  collectors  may  receive,  at  par,  with  an  adjustment  for 
accrued  interest,  certificates  of  indebtedness  issued  by  the  United  States 
and  uncertified  checks  in  payment  of  income,  war-profits,  and  excess- 
profits  taxes  and  any  other  taxes  payable  other  than  by  stamp,  during 
such  time  and  under  such  regulations  as  the  commissioner,  witli  the 
approval  of  the  Secretary,  shall  prescribe ;  but  if  a  check  so  received 
is  not  paid  by  the  bank  on  which  it  is  drawn,  the  person  by  whom  such 
check  has  been  tendered  shall  remain  liable  for  the  payment  of  the 
tax  and  for  all  legal  penalties  and  additions  the  same  as  if  such  check 
had  not  been  tendered. 

Art.  39.  Payment  of  tax  by  uncertified  checks. — Collectors  may 
accept  uncertified  checks  in  payment  of  excise  taxes,  provided  such 
checks  are  collectible  at  par;  that  is,  for  their  full  amount,  without 
any  deduction  for  exchange  or  other  charges.  The  collector  will 
stamp  on  the  face  of  each  check  before  deposit  the  words  "  This  check 
is  in  payment  of  an  obligation  to  the  United  States  and  must  be  paid 
at  par.  No  protest,"  with  his  name  and  title.  The  day  on  which 
the  collector  receives  the  check  will  be  considered  the  date  of  pay- 
ment so  far  as  the  taxpaj^er  is  concerned,  unless  the  check  is  returned 
dishonored.  If  one  check  is  remitted  to  cover  two  or  more  persons' 
taxes,  the  remittance  must  be  accompanied  by  a  letter  of  transmittal 
stating  (a)  the  name  of  the  draAver  of  the  check,  (&)  the  amount  of 
the  check,  (c)  the  amount  of  any  cash,  mone}^  order,  or  other  instru- 
ment included  in  the  same  remittance,  (d)  the  name  of  each  person 
whose  tax  is  to  be  paid  by  the  remittance,  (e)  the  amount  of  the 
payment  on  account  of  each  person,  and  (/)  the  kind  of  tax  j)aid. 

Art  40.  Procedure  with  respect  to  dishonored  checks. — If  the  bank 
on  which  any  such  check  is  drawn  should  refuse  to  pay  it  at  par, 
the  check  should  be  returned  through  the  depositary  bank  and  be 
treated  in  the  same  manner  as  a  bad  check.  All  expenses  incident  to 
the  attempt  to  collect  such  a  check  and  the  return  of  it  through  the 
depositary  bank  must  be  paid  by  the  drawer  of  the  check  to  the  bank 
on  which  it  is  drawn,  since  no  deduction  can  be  made  from  amounts 
received  in  payment  of  taxes.  Sec  section  3210  of  the  Revised  Stat- 
utes. If  any  taxpayer  whose  check  has  been  returned  uncollected  by 
the  depositary  bank  should  fail  at  once  to  make  the  check  good,  the 
collector  should  proceed  to  collect  the  tax  as  though  no  check  had 
been  given.  A  taxpaj^er  who  tenders  a  certified  check  in  payment  for 
taxes  is  also  not  released  from  his  obligation  until  the  check  has  been 
paid.     See  chapter  191  of  the  act  of  March  2,  1911. 


§904  EXCISE   TAXES  ON   SALES  BY  THE  DEALER.  2B 

PENALTIES. 

Skc.  130S.  (a)  That  Jiiiy  person  requiied  under  Titles  V,  VI,  VII, 
VIII.  IX.  X,  or  XII,  to  pay,  or  to  collect,  acconnt  for,  and  pay  over  any 
tax,  or  required  by  law  or  regulations  made  under  authority  thereof  to 
make  a  return  or  .sui)ply  any  information  for  the  purposes  of  the  com- 
putation, assessment,  or  collection  of  any  such  tax,  who  fails  to  pay, 
collect,  or  trnlj'  account  for  and  pay  over  any  such  tax,  make  any 
such  return,  or  supply  any  such  information  at  the  time  or  times  rc- 
(luireil  by  law  or  regulation  shall  in  addition  to  other  penalties  provided 
by  law  Ije  subject  to  a  penalty  of  not  more  than  $1,000. 

(b)  Any  person  who  willfully  refuses  to  pay,  collect,  or  truly  account 
for  and  pay  over  any  such  tax,  make  such  return,  or  supply  such 
information  at  the  time  or  times  required  by  law  or  regulation,  or  who 
\\illfully  attempts  in  any  manner  to  evade  such  tax  shall  be  guilty  of  a 
misdemeanor  and  in  addition  to  other  penalties  provided  by  law  shall 
be  fined  not  more  than  $10,000  or  imprisoned  for  not  more  than  one 
year,  or  both,  together  with  the  costs  of  prosecution. 

(c)  Any  person  who  willfully  refuses  to  pay.  collect,  or  truly  ac- 
count for  ami  pay  over  any  such  tax  shall,  in  addition  to  other  penal- 
ties provided  by  law,  be  lijd)le  to  a  penalty  of  the  amount  of  the  tax 
evaded  or  not  paid,  collected,  or  accounted  for  and  paid  over,  to  be 
as.sessed  and  collected  in  the  .same  manner  as  taxes  are  as-sessed  and 
collected:  rrovidcd  lioiccro;  That  no  penalty  shall  be  assessed  under 
this  subdivision  for  any  offen.se  for  which  a  penalty  may  be  assessed  un- 
der authority  of  section  3176  of  the  Kevised  Statutes,  as  amended,  or  sec- 
tion 603  or  620  of  this  act,  or  for  any  offense  for  which  a  penalty  has 
been  recovered  under  section  3256  of  the  Revised  Statutes. 

(d)  The  term  "  per.son  "  as  used  in  this  section  includes  an  ollicer  or 
employee  of  a  corporation  or  a  member  or  employee  of  a  partnership, 
who  as  such  officer,  employee,  or  member  is  under  a  duty  to  perform  the 
act  in  respect  of  which  the  violation  occurs. 

Art.  41.  Penalties. — Any  person,  including  an  officer  or  employee 
of  a  corporation  and  a  member  or  employee  of  a  partnership  in  the 
course  of  his  duty,  who  fails  to  pay  or  collect  a  tax  or  to  make  a  re- 
turn, is  liable  to  a  penalty  of  $1,000.  If  his  failure  is  willful,  or  he 
otherwise  tries  to  evade  the  tax,  he  is  guilty  of  a  misdemeanor  and 
liable  to  a  fine  of  $10,000  and  imprisonment  for  a  year.  If  his  failure 
is  willful,  he  is  also  liable  to  the  addition  to  the  tax  of  a  100  per  cent 
penalty,  except  that  the  penalty  is  50  per  cent  for  a  f randulent  return. 
Section  3176  of  the  Revised  Statutes,  as  amended  by  section  1317  of 
.  the  revenue  act  of  1918,  provides: 

Sec.  3176.  If  any  person,  corporation,  conipany.  or  association  fails  to 
make  and  file  a  return  or  list  at  the  time  prescribed  by  law  or  by  regu- 
lation made  under  authority  of  law.  or  makes,  willfully  or  otherwise, 
a  false  or  fraudulent  return  or  list,  the  collector  or  deputy  collector 
shall  make  the  return  or  list  from  his  own  knowledge  and  from  such 
information  as  he  can  obtain  through  testimony  or  otherwi.se.  In 
any  such  case  the  conunissioner  may.  from  his  own  knowledge  and 
from  such  information  as  he  can  obtain  through  testimony  or  other- 


24  EXCISE   TAXES   ON    SALES   BY   THE   DEALER.  §  904 

wise,  make  a  return  or  aiiieiHl  any  return  uia<le  by  a  collector  or 
deputy  collector.  Any  return  or  list  so  made  and  subscribed  by  the 
connnissioner.  or  by  a  collector  or  deputj*  collector  and  approved  by 
the  commissioner,  shall  be  jirima  facie  i^ood  and  suflicient  for  all  legal 
purposes. 

If  the  failure  to  file  a  return  or  list  is  due  to  sickness  or  absence, 
the  collector  may  allow  such  further  time,  not  exceeding  thirty  days, 
for  making  and  filing  th.e  return  or  list  as  he  deems  proper. 

The  Commissioner  of  Internal  Hevenue  shall  determine  and  assess 
nil  taxes,  other  than  stan)p  taxes,  as  to  which  returns  or  lists  are  so 
made  under  the  provisions  of  this  section.  In  case  of  any  failure  to 
make  and  file  a  return  or  list  within  the  time  prescribed  by  law,  or 
prescribed  by  the  Connnissioner  of  Internal  Revenue  or  the  collector 
In  pursuance  of  law,  the  Commissioner  of  Internal  Revenue  shall  add 
to  the  tax  25  per  centum  of  its  amount,  except  that  when  a  return  is 
filed  after  such  time  and  it  is  shown  that  the  failure  to  file  it  was  due 
to  a  reasonable  cause  and  not  to  willful  neglect  no  such  addition 
shall  be  made  to  the  tax.  In  case  a  false  or  fraudulent  return  or  list 
Is  willfully  made,  the  Commissioner  of  Internal  Revenue  shall  add  to 
the  tax  .50  i>er  centum  of  its  amount. 

The  amount  so  added  to  any  tax  shall  be  collected  at  the  same  time 
and  in  the  same  manner  and  as  part  of  the  tax  unless  the  tax  has  Ijeen 
paid  before  the  discovery  of  the  neglect,  falsity,  or  fraud,  in  which 
case  the  amount  so  adde<l  shall  be  collected  in  the  same  manner  as 
the  tax. 

MISREPRESENTATION  OF  TAX. 

Sec.  1319.  That  whoever  in  connection  with  the  sale  or  lease,  or  offer 
for  sale  or  lease,  of  any  article,  or  for  the  purpose  of  making  such  sale 
or  lease,  makes  any  statement,  written  or  oral,  (1)  intended  or  cal- 
culated to  lead  any  person  to  believe  that  any  part  of  tlie  price  at 
which  such  article  is  sold  or  leased,  or  olfei-ed  for  sale  or  lease,  con- 
sists of  a  tax  imposed  under  the  authority  of  the  United  States,  or 
(2)  ascribing  a  particular  part  of  such  jirice  to  a  tax  Imposed  under 
the  authority  of  the  United  States,  knowing  that  such  statement  is 
false  or  that  the  tax  is  not  so  great  as  the  iwrtion  of  such  price 
ascribed  to  such  tax,  shall  be  guilty  of  a  misdemeanor  and  iipon  con- 
viction thereof  shall  be  punished  by  a  fine  of  not  more  than  $1,000  or 
by  Imprisonment  not  exceeding  one  year,  or  both. 

Art.  42.  Misrepresentation  of  tax. — If  a  dealer  misrepresents  the  tax, 
he  is  guilty  of  a  misdemeanor  and  is  liable  to  a  fine  of  $1,000  and  to 
imprisonment  for  a  year.  This  provision  is  designed,  among  other 
things,  to  prevent  a  dealer  adding  more  than  the  amount  of  the  tax 
to  the  price  of  an  article  and  representing  that  the  increase  is  due 
to  the  tax. 


§004  EXCISE   TAXES   ON   SALES   BY  TPIE   DEALER.  25 

AUTHORITY  FOR  REGULATIONS. 

Sec.  1309.  That  tlie  Commissioner,  with  the  appi'oval  of  tlie  Sec- 
retai-y,  is  hereby  authorized  to  mali:e  all  needful  rules  and  i-egulations 
for  the  enforcement  of  the  provisions  of  this  act. 

Akt.  4?>.  Promulgation  of  regulations. — In  pursuance  of  the  statute 
the  foregoing  regulations  are  hereby  made  and  promulgated  and  all 
rulings  inconsistent  herewith  are  hereby  revoked. 

Daniel  C.  Roper, 
Commissioner  of  Infernal  Revenue. 
Approved,  May  14,  1919 : 
E.  C  Leffingwell, 

Acting  /Secretart/  of  the  I'reasuri/. 


INDEX. 

[The  references  are  to  articles.] 


Art. 

Agents,  sales  by 4 

Aids  to  coUectiOQ  of  tax 34 

Alterations,    repairs 12 

Appliances  for  cripples 26 

Articles,    resale  of 5 

Articles,    secondhand 11 

Articles  stibject  to  tax IS 

Articles  purchased  to  be  leased  or  rented 5 

Auctioneer,  sales  by 3-4 

Authority  for   regulations . 43 

Bags,  hand 17 

Bags,    shopping 17 

Bags,    traveling 16 

Basis  of  tax 6 

Bath   robes 21 

Billing  the  tax 6 

Bonnets,  women's  and  misses' 23 

Boots 26 

Boots,    cripples' 26 

Boxes,  hat,  used  by  travelers 16 

Broker 3^ 

Caps,  men's  and  boys' 25 

Oarpets 13 

Cases,  fitted,  toilet 16 

Oases,  suit 16 

Casual  sale  not  taxable 3 

Charges,  delivery,  as  affecting  price 7 

Checks,  dishonored,  procedure  v/ith  respect  to 40 

Checks,  payment  of  tax  by  uncertified 39 

Checks,  procedure  witli  respect  to  dishonored 40 

Coats,  house 21 

Coats,    smoking 21 

Collection  of  tax,  aids  to 34 

Collect  tax,  failure  to 4 

Commissions  not  deductible  from  sale  price 7 

Consumption  or  use,  sales  for,  as  basis  of  tax 5 

Credits  and  refunds  of  tax 35 

Cripples'  boots 26 

Cripples'  shoes  or  appliances 26 

Date,  effective,  of  tax 1 

Dealer,  itinerant,  payment  of  tax  by 83 

Dealer  responsible  for  tax 4 

Dealer,  who  is  the 3 

Deformed  foot  or  ankle,  shoes  and  appliances  for 26 

27 


28  I^TDEX. 

Art. 

Delivery  charges  as  affectinfr  tax 7 

Discounts  and  expenses  as  affecting  tax 7 

Dishonored  checl<s,  itroeedure  with  respect  to 40 

Effective  date  of  tax 1 

Exchauf^es  of  ^'oods 8 

Exemption  of  export  sales 3G 

Exemptions  from  tax 32 

Exempt,  rugs  made  of  wool 18 

Existing  statutes,  extension  of 34 

Expenses,  discounts  and 7 

Exports 36 

Export,  proof  of 37 

Extension  of  existing  statutes 34 

Failure  to  collect  tax 4 

Fans 20 

Fiber  carpets 13 

Fiber  rugs 13 

Fitted  toilet  cases W 

Fixtures,  portable  lighting 18 

Fractional  part  of  cent  disregarded,  when 38 

Frames,  picture 14 

Gowns,    night 30 

Hand    bags 17 

Hat  boxes  used  by  travelers 16 

Hats,  men's  and  boys' 24 

Hats,  women's  and  misses' 23 

Hoods,  women's  and  misses' 23 

Hose,    silk 28 

House   coats 21 

House    jackets 21 

Imposition  of  tax 1 

Jackets,   house 21 

Jackets,  smoking 21 

Kimonos 21-81 

Lamps 18 

Lamp   shades IS 

Law,    the page  5 

Leased,  articles  pui'chnsed  to  be 5 

Liable  for  tax,  purchaser  is 2 

Lighting  fixtures,  portable 18 

Lounging   robes 21 

Medium  of  payment  of  tax 39 

Measure  of  tax G 

Misrepresentation  of  tax 42 

Neckties,  men's  and  boys' 27 

Neckwear,  men's  and  boys' 27 

Nightgowns 30 

Pajamas 30 

Parasols 19 

Payment  of  tax  by  upcertified  checks 39 

Payment  of  tax,  medium  of 39 

Payment  of  tax,  return  and 33 

Penalties . , ,  41 


INDEK.  29^ 

Art. 

Petticoats 31 

Picture  frames 14 

Pocketbooks 17 

Portable  lighting  fixtures 18 

Premiums,  articles  given  as,  taxable 6 

Price — as  basis  of  tax 6 

Procedure  with  respect  to  dishonored  checks 40 

Promulgation  of  regulations 43 

Proof  of  export 37 

Pumps,  men's,  women's,  etc 26 

Purchaser  is  liable  for  tax 2 

Purses 17 

Receiver  responsible  for  tax 3 

Refunds,  credits  and,  of  tax 35 

Regulations,  authority  for 43 

Regulations,  promulgation  of 43 

Rented,  articles  purchased  to  be : 5 

Repairs  and  alterations 12 

Resale,  articles  procured  for ,  5 

Responsible  for  tax,  dealer ' 4 

Return  and  payment  of  tax .33 

Robes,  bath 21 

Robes,  lounging 21 

Rugs ^__  13 

Rugs,  made  of  wool  exempt .__ 15 

Sale r ^_  6 

Sale,  casual ^ , 3 

Sales  to  a  subdivision  of  a  State 10 

Sales  to  a  State , 10 

Secondhand  articles . 11 

Shades,  lamp 18 

Shades,  sun 19 

Shoes 26 

Shoes  for  cripples 26 

Shirts  29 

Shopping  bags 17 

Silk  hose 28 

Silk  stockings 28 

Slippers 26 

Smoking  coats 21 

Smoking  jackets 21 

State,  sales  to 10 

Statutes,  extension  of  existing ,  34 

Stockings,  silk 28 

Suit  cases 16 

Sunshades 19 

Tax,  aids  to  collection  of 34 

Tax,  articles  subject  to .  13 

Tax  attaches,  when 9 

Tax,  basis  of 6 

Tax,  billing  the 6 

Tax  collected  by  dealer 2 

Tax,  dealer  responsible  for 4 


30  INDEX. 

Art 

Tax,  effective  date  of 1 

Tux,  failure  toeollect 4 

Tax,  imposition  of 1 

Tax  is  on  sale  niatle 9 

Tax,  measure  of 6 

Tax,  medium  of  jKiyment 39 

Tax,   misrepresentation  of 42 

Tax  on  increased  pi'ice 7-8 

Tax,  payment  and  return  of 33 

Tax,  payment  of,  by  uncertified  cheel^s 39 

Tax,  price  as  basis  of 6 

Tax,  purcliaser  liable  for 2 

Tax,  receiver  responsible  for 3-4 

Tax,  return  and  payment  of 33 

Tax,  -when  delivery  charges  included  in 7 

Toilet  cases,  fitted 16 

Traveling  bags 16 

Trunks 15 

Trustee  in  bankruptcy  responsible  for  tax 3-4 

Umbrellas - 19 

Uncertified  checks,  payment  of  tax  by 39 

Underwear 30 

Use,  consumption  or 5 

Valises 16 

"Waistcoats,  men's 22 

Waists , 31 

When  article  is  within  language  of  two  or  more  sections  of  statute 32 

When  fractional  part  of  cent  disregarded ^ 

When  tax  attaches 9 

Who  is  the  dealer? 3 

Wool,  rugs  made  of 13 


o 


LAW  LIBRARY 

UNIVB«S1TY  OF  CALIP©RNU 

LOS  ANGfiLES 


1 


GAYLAMOUNT 

PAMPHLET  BINDER 

/^ 

Manufactured  by 

GAYLORDBROS.  Inc. 

Syracuse,  N.Y. 

Stockton,  Calif. 


D    000  829  391    2 


